New Delhi: India’s expanding partnership with Oman offers Delhi an alternative route for crucial imports amid supply disruptions caused by the closure of the Strait of Hormuz, experts said on Friday, as a free trade pact between the two countries went into effect earlier this week.
Under the India-Oman Comprehensive Economic Partnership Agreement, India will export most of its goods without paying tariffs, covering about 99 percent of the total value of India’s exports to Oman.
While lower tariffs and improved trade rules are expected to help Indian businesses remain competitive, the pact that came into force on Monday arrives as energy supplies from the Middle East remain disrupted following US-Israeli attacks on Iran on Feb. 28.
“The coming into force of the CEPA between India and Oman has immediately gained significance due to the crisis in the Middle East and the closure of the Strait of Hormuz, through which massive chunks of energy and trade flow,” said Anil Wadhwa, former Indian ambassador to Oman and a distinguished fellow at the Vivekananda International Foundation.
“For India, this agreement is about securing its future when the ground beneath global supply chains is shifting.”
